WEX(US:WEX)2024-07-25 10:36Revenue and Income - Q2 2024 revenue increased 8% year-over-year to a record $673 million, driven by 13% growth in the Benefits segment and acceleration in Mobility segment growth rate [2]. - Q2 GAAP net income was $77 million, or $1.83 per diluted share, a decrease from $95.3 million, or $2.20 per diluted share, in Q2 2023 [6]. - Adjusted net income for Q2 2024 was $164 million, or $3.91 per diluted share, up 8% from $159.3 million, or $3.63 per diluted share, in the same period last year [6]. - Total revenues for Q2 2024 reached $673.5 million, a 8.4% increase from $621.3 million in Q2 2023 [21]. - Payment processing revenue increased to $318.4 million, up 5.9% from $300.5 million year-over-year [21]. - Net income for Q2 2024 was $77.0 million, a decrease of 19.1% compared to $95.3 million in Q2 2023 [21]. - Adjusted net income for Q2 2024 was $164.0 million, or $3.91 per diluted share, compared to $159.3 million, or $3.63 per diluted share in Q2 2023 [27]. Cash Flow and Assets - Cash flows from operating activities for the first half of 2024 were negative at $(160.3) million, compared to positive cash flows of $99.5 million in the same period of 2023 [25]. - Total assets as of June 30, 2024, were $14,246.9 million, an increase from $13,882.1 million at the end of 2023 [23]. - Total liabilities increased to $12,463.3 million from $12,061.5 million at the end of 2023 [23]. - The company reported a decrease in cash and cash equivalents to $682.6 million from $975.8 million at the end of 2023 [23]. - Adjusted free cash flow for the three months ended June 30, 2024, was $161.1 million, compared to $192.3 million in 2023 [35]. - Operating cash flow for the six months ended June 30, 2024, was reported at $(160.3) million, a decrease from $99.5 million in 2023 [35]. Segment Performance - Corporate Payments' purchase volume grew 12% to $25.8 billion from $22.9 billion in Q2 2023 [7]. - Mobility segment payment processing revenue for Q2 2024 was $177.2 million, a 3% increase from $172.2 million in Q2 2023 [44]. - Corporate Payments segment payment processing revenue increased by 11% to $116.2 million in Q2 2024 from $104.7 million in Q2 2023 [44]. - Benefits segment total revenues reached $179.8 million in Q2 2024, reflecting a 13% increase compared to $159.2 million in Q2 2023 [44]. - Total segment adjusted operating income for Q2 2024 was $299.9 million, up from $275.9 million in Q2 2023, with a margin of 44.5% [45]. - Adjusted operating income for the Mobility segment was $154.3 million in Q2 2024, with a margin of 42.9% [45]. Future Outlook - For Q3 2024, the company expects revenue in the range of $688 million to $698 million and adjusted net income in the range of $4.42 to $4.52 per diluted share [15]. - For the full year 2024, revenue is expected to be in the range of $2.68 billion to $2.72 billion, with adjusted net income expected to be between $15.98 and $16.38 per diluted share [15]. - The company plans to continue investing in new technologies and market expansion strategies to drive future growth [21]. - The company achieved $100 million of run rate savings six months earlier than expected and continues to invest in EV offerings and digital transformation [4]. Shareholder Actions - The company repurchased approximately $100 million worth of shares in Q2 and plans to enter into a $300 million accelerated share repurchase agreement [4]. - The weighted average diluted shares outstanding decreased to 42.0 million in Q2 2024 from 43.4 million in Q2 2023 [21]. Operating Metrics - For the three months ended June 30, 2024, the operating income was $168.1 million with a margin of 25.0%, compared to $159.4 million and a margin of 25.7% in 2023 [28]. - Total segment adjusted operating income for the same period was $299.9 million, representing a margin of 44.5%, up from $275.9 million and a margin of 44.4% in 2023 [28]. - Adjusted operating income for the six months ended June 30, 2024, was $525.2 million, with a margin of 39.6%, compared to $480.7 million and a margin of 39.0% in 2023 [28]. Market Conditions - The impact of foreign exchange (FX) on reported revenue for the six months ended June 30, 2024, was favorable by $0.1 million [36]. - The price per gallon of fuel (PPG) positively impacted revenue by $25.9 million for the six months ended June 30, 2024 [37]. - The estimated adjusted net income impact from FX for the six months ended June 30, 2024, was $0.4 million, while the PPG impact was $17.9 million [38]. - The average US fuel price was $3.62 per gallon in Q2 2024, up from $3.56 in Q1 2024 [40].